The credit crunch is forcing British consumers to change their spending habits, according to research by media planning group MPG.

A survey of 3,000 families found that 67 per cent of households have reined back spending on luxury items, and 54 per cent now spend less on groceries, while a similar number - 53 per cent - also splash out less on clothing. Nearly 40 per cent are saving less, and 10 per cent have cut back on payments into pension schemes.

Not surprisingly, given higher bills for heating the home, nearly 40 per cent of families say they now spend significantly less on energy. But the research also found that 63 per cent say they are not planning to cut back on vices like cigarettes and alcohol.

Two-thirds of families - 67 per cent - say they are now spending more on nights in and relying more on home entertainment.

Over a quarter of respondents say they are worried about redundancy in the next year, but, perhaps surprisingly, only 64 per cent say they believed the value of their homes had fallen since the start of the current economic crisis.